After a two-year spending spree fuelled by natural resource revenues and the promise of more to come, the Saskatchewan government hit the brakes with its latest provincial budget Wednesday.
Finance Minister Rod Gantefoer hiked sin taxes, eliminated government positions, deferred capital spending and made a multitude of small cuts, such as axing provincial funding for chiropractic services.
The province again ran an operational deficit and relied on reserves to balance the budget.
Overall, savings are being carved out from the budgets of 14 ministries as government expenditures hit $10.12 billion -- a 1.2% drop in spending from the budget delivered a year ago, although slightly higher than actual government expenditures in 2009-10.
The only ministries to see significant spending increases were health, which received a 3.1% hike, and social services.
Gantefoer said the government is aiming for a balanced approach of "living within its means" while also protecting core services.
Hanging over this year's financial plan is the shadow of last year's budget, which went awry with overly optimistic predictions of potash revenues -- estimates that were off by an unprecedented $2 billion.
Potash is a compound widely used in the production of fertilizer. Saskatchewan has the world's largest proven deposits.
Opposition NDP Leader Dwain Lingenfelter said the government is inflicting pain by cutting services while continuing runaway spending and racking up deficits.
"This is a budget that can't be trusted presented by a government that can't be trusted to manage the financial affairs of the province," he said.
